State Economy
The population of the “Great Lakes State,” Michigan is approximately 10.03 million people[1]. Michigan is the 10th most populated state in the United States.
In 2022, Michigan’s economy was ranked 14th in the United States in gross domestic product (GDP)[2]. The state’s economy is dependent on the automobile, aerospace, lithium-ion battery, cybersecurity, agriculture, mining, and tourism industries[3].
Environmental Policies
In 2008, Michigan enacted a Renewable Energy Standard which requires all utilities sell 15% of their electricity from renewable energy sources by 2021[4].
In 2016, Michigan established a Renewable Energy Goal that all utilities sell 35% of their electricity from renewable energy sources by 2035.
Power Generation Capabilities
In December 2022, utilities[5] used natural gas (35.1%), coal (27.3%), nuclear power (25.2%), and renewable energy (12.4%) to generate electricity in Michigan. Wind, biomass, and hydropower are the primary types of renewable energy used to generate electricity in Michigan.
In December 2022, the average cost of residential electricity in Michigan was 17.79¢ per kWh, compared to the national average of 14.96¢ per kWh.
Recent renewable energy developments in Michigan include:
- 650 MW Solar Projects – Michigan utility DTE Energy is continuing work on building solar projects at multiple locations for the Ford Motor Company in Michigan. All the solar projects are scheduled to be commissioned by 2025.
- 5 MW Wind Project – In April 2021, DTE Energy commissioned the Isabella I and Isabella II Wind project at a site approximately 75 miles north of the state capital, Lansing.
- 200 MW Solar Project – In December 2022, Illinois power company, Invenergy commissioned the Calhoun solar project at a site approximately 50 miles southwest of Lansing.
- 168 MW Wind Project – In April 2020, DTE Energy commissioned the Polaris wind project at a site approximately 40 miles north of Lansing.
- 149 MW Solar Project – In December 2022, California solar company, Swinerton Renewable Energy commissioned the River Fork solar project at a site approximately 45 miles south of Lansing.
- 79 MW Solar Project – In December 2021, Illinois solar company, Ranger Power commissioned the Assembly Solar III project at a site approximately 40 miles northeast of Lansing.
- 72 MW Wind Project – In April 2021, DTE Energy commissioned the Fairbanks wind project at a site approximately 250 miles northwest of Lansing.
- 72 MW Solar Projects – In December 2022, California solar company, Borrego commissioned three solar projects which will have a total capacity of 72 MW.
- 68 MW Solar Projects – Michigan utility, Consumers Energy is continuing work to install rooftop solar panels on 1,274 state of Michigan government buildings.
- 20 MW Solar Project – In June 2021, British utility National Grid commissioned the Bingham Solar project at a site approximately 15 miles north of Lansing.
Conclusions
Commercial coal mining began in Michigan in 1859[6] at a site approximately 35 miles south of the town of Lansing. Coal was initially used to fuel steam engines for the railroad, forges, and furnaces.
Michigan’s last commercial coal mine[7] closed in 1952. Most of the coal used to fuel Michigan’s power plants is now brought by rail from Wyoming and Montana.
In 2010, 58.7% of Michigan’s electricity was generated from coal-fueled power plants[8]. In December 2022, 27.3% of Michigan’s electricity was generated from coal. Why the decrease?
- Economics – The cost to generate power from wind, solar, and hydropower is significantly cheaper than coal. The cost to generate power from coal-fired plants is over twice the cost of wind or solar.
- Environment – Coal ash, the product of coal burned in a power plant contains arsenic, mercury, and lead; which are toxic. In 2019, coal ash was reported to have contaminated the ground water around 241 coal-fired plants in America[9].
- Climate Change – Coal generates 40% to 45% more greenhouse gases than natural gas.
Over the past decade, the abundance of cheap natural gas has prompted Ohio’s utilities to shift from coal to natural gas fueled power plants. However, Ohio is still heavily dependent on fossil fuels (natural gas, coal, and oil) for the state’s electricity.
In 2010, 69.6 % of Michigan’s electricity[10] was generated from fossil fueled power plants. In December 2022, 62.4% of the state’s electricity was generated from fossil fuels.
On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the global price for crude oil and natural gas prices increased by over 50% from May 2021 to May 2022.
In 2021, the United States was the 3rd largest liquified natural gas (LNG) exporting country, behind Australia and Qatar. The United States has increased LNG exports to Europe to back-fill for the loss of Russian natural gas imports. Natural gas prices are now forecast to further increase as demand for non-Russian natural gas increases around the world.
Michigan has significant renewable energy resource potential, including wind, solar, and biomass. State utilities are accelerating the development of renewable energy projects, as coal and natural gas prices continue to increase. The Great Lakes State continues to cool on coal and while warming to low-cost, reliable renewable energy.
Jack Kerfoot
Website – “Our Energy Conundrum”
www.jackkerfoot.com
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles on numerous energy related issues and topics.
[1] Michigan Population 2023, World Population Review
[2] U.S. Department of Commerce, Bureau of Economic Analysis
[3] Biggest Industries in Michigan – World Atlas
[4] National Conference of State Legislators – State Renewable Portfolio Standards and Goals, August 13, 2021
[5] U.S. Energy Information Agency – Michigan State Profile and Energy Estimates, www.eia.gov
[6] U.S. Department of the Interior, Office of Surface Mining Reclamation and Enforcement
[7] Michigan State University, History of Coal Mining In Michigan
[8] U.S. Energy Information Agency, Michigan Electric Power Consumption Estimates 1960 – 2018
[9] Reuters, “Coal Ash Contaminates Groundwater Near Most U.S. Coal Plants: Study” by Valerie Volcovici, March 3, 2019
[10] U.S. Energy Information Agency – Michigan State Profile and Energy Estimates, www.eia.gov